In the short-run, real GDP can be greater than or less than potential GDP because in the short run the
A) money wage rate is fixed.
B) quantity of capital is fixed.
C) full-employment level of employment is fixed.
D) price level is fixed.
Correct Answer:
Verified
Q203: The aggregate demand curve illustrates that, as
Q204: By using only the aggregate demand curve,
Q205: In the short run, the intersection of
Q206: Q207: Full-employment equilibrium occurs when Q209: If the economy is at long run Q210: As the price level falls, the quantity Q211: Short-run macroeconomic equilibrium occurs when the quantity Q212: At long-run macroeconomic equilibrium, Q213:
A) real GDP exceeds
A) an inflationary gap
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents